Introduction
The
Savant DTA FX Trading Method is designed to take trades based on
predetermined requirements to achieve an increase in successful
trades. This is achieved through specific technical analysis and
money management. The strategies act independently of each other to
take advantage of different market conditions. For example the FX
Sniper takes advantage of trend following conditions, SRC takes
advantage of range bound markets and the FX Sniper Breakout takes
advantage of news releases. The one thing in common to all the
systems is their risk management. The systems all share the same
scalping characteristic which involves a small stoploss and even a
smaller profit target.
The Trade Copy execution service is designed for those
trades who have completed the Savant Day Trading Academy course however do not
have time to trade or find the psychological pitfalls of trading
challenging. These pitfalls may include miss timing entries,
inconsistency of taking signals or incorrectly exiting. Experienced
trader and architect of the Savant DTA FX Trading systems, Richard
Jackson, will execute and manage the trades based solely on the
systems.
Trades taken by the Trade Copy execution service are
based on the FX sniper, FX Sniper Breakout and FOREX SRC scalping
strategies. Trade copy looks to generate 50-200 pip per week with
approximately 0-6 trades a day. Each strategy is a scalping method
which commands a high win loss ratio. These strategies also have low
risk to reward ratio which gives it the scalping title.
SYSTEMS PERFORMANCE BASED ON 1 LOT
|
|
|
|
Win Loss Ratio |
83% |
|
System
R-Multiple |
0.516 |
|
Maximum Drawdown |
$472 |
|
Max Consecutive Losing
Trades |
2 |
|
|
|
See below for reference of performance
labels
Win Loss Ratio
Win/loss ratio tells trader the percentage of times
trades win in a system. This ratio is calculated by (Wins/ (Loses +
Wins)) x 100. For Example, if a system wins 5 times and losses 2
times the win/loss ratio will = 71.42%. Needless to say, the use of
large data sample for testing is better. You will never get an
accurate representation of a system using limited
data.
System Risk Multiple
Risk to reward is used when understanding the overall
risk verses reward for a system. To find the Risk to Reward Ratio in
a system use the following: Average Winning Trades/ Average Losing
Trades. Take into account the following trades using FOREX profit
and losses.
|
|
Profit |
Loss |
|
Trade 1 |
$176 |
|
|
Trade 2 |
|
$200 |
|
Trade 3 |
$678 |
|
|
Trade 4 |
$31 |
|
|
Trade 5 |
|
$200 |
|
Trade 6 |
$51 |
|
|
Trade 7 |
$579 |
|
|
Trade 8 |
$754 |
|
|
Trade 9 |
|
$200 |
|
Trade 10 |
$1,065 |
|
|
Total |
$3,334 |
$600 |
|
Average |
$476 |
$200 |
|
R-Multiple |
2.38 |
|
Drawdown
According to tested results drawdown is the maximum
equity lost due to losing trades. This allows a trader to be
prepared for a worst case scenario in the event of either
consecutive losing trades or a higher number of losers than winning
trades. This also ensures that a trader has enough trade capital
account to survive such an event. It is good to work out the maximum
drawdown in a system.
Drawdown = Lowest value between two consecutive equity
highs
Trading Time: 9am 9pm
Note: though rare, some trades may not be taken due
software, computer and human error.
Support Resistance
Convergence
Method
This trading strategy is based on the convergence of
price into support resistance levels. The levels can be created by
trendlines, Fibonacci levels, moving averages, and pivots. The
premise to identifying high probability trade set ups is to first
find clusters of support and resistance. Entries are taken on the
first touch of the level or the cluster area. This is a scalping
strategy, so take profit order is a small amount. Probability of
signals can be ranked according to S/R type. See below for ranking
order.
Currency Pairs = AUD/USD EUR/USD
GBP/USD
Main Time Frame = 15
Minute
Contributory Time Frames = 1 Hour,
Daily
Direction = Long/Short;
Re-entries = Allowed;
Figure 1
Figure 2
Figure 3
FX
Sniper
Method:
This method takes advantage of price retracements. It
attempts to trade in the direction of the trend. Using key moving
averages and Bollinger bands and Pivots it waits for a directional
move to determine trend then take entries on the retracement.
Currency Pairs = AUD/USD EUR/USD
GBP/USD
Main Time Frame = 15 Minute + 1
Hour
Contributory Time Frames = H1,
Daily
Direction = Long/Short;
Re-entries = Allowed;
Figure 4
Figure 5
Breakout opportunities 15 min (FX
Sniper)
Method
This method takes
advantage of market moving
news announcements where breakout opportunities may be taken.
Conservatively, the trade is taken at the end of 15 min when a
decisive move has been observed after the
release.
Currency Pairs = AUD/USD EUR/USD
GBP/USD
Main Time Frame = M15
Direction = Long/Short;
Re-entries = Allowed;
Figure 6
Money Management
Float = Client can choose account size above $5,000.
Alpha Equities & Futures will not accept floats less than
$5,000;
Leverage 1:50;
Master Terminal will use the following money
management
PositionSizeModel = "Fixed $ Position
Value";
Position Size = 50,000 (0.5 Lot);
Maximum Allowable Position Size = 250,000
net
Trade Management:
MinPositionValue =
50,000;
MaxPositionValue =
50,000;
